All Forum Posts by: Quamal Burton

@John Warren understood! I'm an agent and investor. I have one 3 unit property that I purchased about 3 years ago, in which I house hack. I've been looking for my second property for about two years. I've had about 6 properties under contract in that time frame but all the deals fell through because my all in costs always exceeds the arv. I'm underestimating rehab cost and when my hud inspector provides me the work write up (I'm using a 203k loan) the rehab + purchase price is always far more than I anticipated at the walk through. All these deals have been from the MLS. So I guess my point is, the MLS has been no good at all for me! Your points were great though. I've scored winning some H&B offers they relationships, BUT the deal always fell through four me.

@John Warren can you elaborate on how you are currently finding deals in Berwyn? MLS? Direct Marketing? Wholesalers? Etc? Most listings in Berwyn on the MLS are priced so high that it seems impossible to cash flow there. Berwyn is an area I'm highly interested in.

I recently purchased my first property in December. It is a 3 unit that I'm house hacking. Mortgage is about 2k and my gross rents are $2400 a month. I used a first-time homebuyers conventional loan. I live in a C+ neighborhood. My original plan was to house hack my way to financial freedom but, Chicago's market is one where you'll only receive decent rental income if you invest in warzones. Its merely impossible to house hack in a good neighborhood and break even on your mortgage from rental income. The B+ and up neighborhoods are affordable when you're purchasing a condo, townhome or single-family. I was looking to purchase my next property soon utilizing the FHA loan. The responsible, goal-driven me says suck it up and purchase a multi-unit in a sub-par neighborhood to get the rental income but, another side of me is saying put my comfort above all and purchase a condo or townhome in a great area and come back later and purchase the rentals in warzones for decent rental income. What would you do?

I grew up in the West Garfield Park community. If you're looking for cash flow I do feel that the area is great for that. If you're looking for appreciation, I'd say no. The neighborhood is crime infested and the crime will not be stopped any time soon. 

@Todd dexheimer and @Mike H thanks guys! This is what I've heard from most people! I am a high risk reward type of person, not a play it safe and succumb to mediocrity.

The advice I've received has been amazing!!!!! Everybody provided valid points. I see most people advising me to have a solid plan upon leaving my w-2 job but, I'm the type of person that'll never be 100% sure about a plan and if having the perfect plan was the only way that I'd leave my job I'd be there forever! I may never have a perfect plan but, I do know I will hustle my butt off!!!! @Ryan Evans the advice of only taking advice from people I want to be like is great advice and that's what I always attempt to do! I'm noticing that a lot of people are advising to suck it up and stay aye my job because that's the simplest and most basic way to become wealthy but, I'm not in search of how to become wealthy, I'm in search of the fastest and most efficient way to become wealthy! If I can become wealthy at the age of 30 rather than 45 then I have an extra 15 years to enjoy life the way financial independent people enjoy it. No waiting for a bosses approval to go on vacation, to wake up at 6am when you're dead tired. I do believe I'll stay at my job at least until I purchase another property utilizing the FHA loan but, after that I'm I'll quit. Solid plan or not. If I do not give it a try it'll hunt me forever.

I greatly appreciate all of you guys advice! The diversity of these answers are a gift and a curse. Gift because I see it from so manu perspectives and a curse because I'm still indecisive about whay to do. Also, a more in depth analysis of my situation may be necessary for you guys to accurately assess my situation. I have over 6 figures saved up and not only do I already have my real estate license but, I also havea CDL drivers license, so if things fall completely apart in real estate I do have other avenues open. I by no means disagree with staying at my job and slowly chipping away at financial independence and having the ability to constantly get bank financing but, the idea of waking up at 6am and spending nine hours plus a day at a place I do no wish to be is scary.

@Anthony Dooley Totally understand. I have a substantial amount of money saved up, which is what frustrates me even more that I feel stuck in the 9-5 grind.

@Andrew Kerr Got it! you have provided me great advice! In your 6 year run from 2011-2017 have you made most of your money from flips or buy and holds or a mix of both?

@Anthony Dooley Thanks for the advice. Of course I do not want to be middle class my entire life, which is why I considered quitting my job for entrepreneurship (although I know it will not be easy). I do not want to be the employee who life passes him by because he worked a job he did not like for so many years and now at the age of 60 he is finally able to enjoy his fruits of labor.

@Andrew Kerr This was great advice. I never gave getting another job a thought. I just told myself that after this job I'd never work for anybody else again and become my own boss. I understand that becoming a successful agent will not be easy but, I "believe" I'd be willing to work at it being that I'm so passionate about real estate and enjoy it so much. I'm being an optimist opposed to a pessimist or, even a realist. Can you elaborate on what you mean when you say "building a war chest and de-leverage"?

@Caleb Heimsoth Thanks for the advice. I will definitely take this into consideration.

I've been considering quitting my job a lot lately, should I? I recently purchased my first 3-flat where I should be able to successfully house-hack. Mortgage is 2k and rental income should be about $2600 a month. I make 60k a year at my job and I know staying at my job will enable me to receive financing from banks easier. I used conventional for the first property so if I stick around for another year I can utilize the low-down payment FHA loan and be up two properties. I'm comfortable with in the financial situation that my job provides but, as the saying goes "opportunity is on the other side of fear".

I'm a Procurement Associate and I sit at a cubicle all day creating solicitations. I have my real estate license and I would love to go full-time in real estate as an agent and an investor. I have not done a deal yet as an agent besides my own deal but, I accredit that to not having enough time due to my 8am-5pm job schedule. The idea of waking up every morning and not chasing my dream is wearing me down mentally. I do not want to live average making 60k a year I want 60 million a year. I have money saved up to cover my expenses for about a year. In the book Set For Life, Scott speaks of how you should save up enough money so that you can make an attempt at a career/business with no salary limitations that you'll enjoy doing. I'm 25 years old and I understand that time is of the essence and if I'm going to tackle this journey then i need to begin now! My greatest reason for not leaving my job is that it'll be difficult for me to get financed without W-2 income.

So should I play it safe and stay at my job or step out on the limb and go full-time in real estate?